Correlation Between JNK India and Ujaas Energy

Can any of the company-specific risk be diversified away by investing in both JNK India and Ujaas Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JNK India and Ujaas Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JNK India and Ujaas Energy Limited, you can compare the effects of market volatilities on JNK India and Ujaas Energy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JNK India with a short position of Ujaas Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNK India and Ujaas Energy.

Diversification Opportunities for JNK India and Ujaas Energy

0.26

Correlation Coefficient

JNK India  Ujaas Energy

Modest diversification

The 3 months correlation between JNK and Ujaas is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding JNK India and Ujaas Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ujaas Energy Limited and JNK India is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JNK India are associated (or correlated) with Ujaas Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ujaas Energy Limited has no effect on the direction of JNK India i.e., JNK India and Ujaas Energy go up and down completely randomly.

Pair Corralation between JNK India and Ujaas Energy

Assuming the 90 days trading horizon JNK India is expected to generate 17.31 times less return on investment than Ujaas Energy. But when comparing it to its historical volatility, JNK India is 1.11 times less risky than Ujaas Energy. It trades about 0.0 of its potential returns per unit of risk. Ujaas Energy Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  29,223  in Ujaas Energy Limited on May 7, 2025 and sell it today you would earn a total of  1,617  from holding Ujaas Energy Limited or generate 5.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

JNK India  vs.  Ujaas Energy Limited

JNK India

Risk-Adjusted Performance

Very Weak

Over the last 90 days JNK India has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, JNK India is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Ujaas Energy Limited

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ujaas Energy Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Ujaas Energy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with JNK India and Ujaas Energy

The main advantage of trading using opposite JNK India and Ujaas Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JNK India position performs unexpectedly, Ujaas Energy can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ujaas Energy will offset losses from the drop in Ujaas Energy's long position.

The idea behind JNK India and Ujaas Energy Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.